THE IMPACT OF FISCAL POLICY ON ECONOMIC GROWTH IN THE COUNTRIES OF EASTERN EUROPE

This paper deals with the effects of fiscal policy on economic growth in 10 countries of Eastern Europe. For this analysis we to use two regression models. The results of the first model provide information on the factors that influence economic growth. Thus, direct taxes, indirect taxes, total income taxes, social contributions and the economic crisis had an effect on economic growth. Of these variables, total taxable income had a positive effect and indirect taxes and social contributions had a direct negative effect on economic growth. In the second model, the analysis confirmed that a significant effect on economic growth have had other direct taxes, social contributions of the employer and economic crisis, the first two being negatively correlated with GDP/capital.